His rally Bitcoin brought the cryptocurrency within a “breather” of $90,000 for the first time, lifting the overall value of the cryptocurrency market above the pandemic-era level, as traders bet on further price growth under US President-elect Donald Trump, according to with the Bloomberg agency.

The world’s largest cryptocurrency has rallied 32% since the Nov. 5 US election, hitting an all-time high of 89,599 earlier on Tuesday. It later retreated and now moves to $86,727.

Trump has promised friendlier regulatory rules for the industry cryptocurrencies while the Republican Party takes control of both houses of Congress, thus allowing it to push its agenda unhindered. Trump’s other promises include creating a strategic Bitcoin reserve and promoting its domestic mining to make the US the international “capital” of cryptocurrencies.

His stance contrasts with the Securities and Exchange Commission’s crackdown on the divisive industry under President Joe Biden. The shift in tone has fueled speculative buying of both major and minor cryptocurrencies, boosting the value of digital assets in total to around $3.1 trillion. dollars, according to data from CoinGecko.

Frenzy

Bitcoin is in a “frenzy,” said Chris Weston, head of research at Pepperstone Group. “The question for traders is whether there is still room for further upside or to wait for a small pullback after the impulsive uptrend.”

Investors are betting on the options market that Bitcoin will surpass $100,000 before the end of the year, according to data from cryptocurrency exchange Deribit.

Meanwhile, software company MicroStrategy bought about 27,200 Bitcoins for about $2 billion between October 31st and November 10th.

Traders are currently paying little attention to questions like how quickly Trump will implement his agenda or whether a strategic stockpile is a realistic step. The investment mood is illustrated by the recent doubling of the price of Dogecoin promoted by Trump supporter Elon Musk.

Rally

In 2024, Bitcoin is rallying around 110%, also helped by interest rate cuts from the US Federal Reserve (Fed). The rise of the cryptocurrency is outpacing the returns of international stocks and gold.

Fairlead Strategies LLC analyst Katie Stockton said “it’s to be expected to see a period of pullback after such a sharp rise” in Bitcoin, recommending a “short-term neutral position.”

Digital asset companies spent heavily during the US election campaign to boost candidates seen as favorable to their interests. In that context, Trump has made a U-turn and become a supporter of an industry he once called a fraud.